JBS Falls Into Red, After Wrong Bet On U.S. Cattle

Source: Agrimoney.com

Wed, 2011-08-17 18:15

The stake of JBS's ruling Batista family has fallen to 47% from nearly 55%.

JBS's expansion into the U.S. turned sour when a wrong bet on cattle prices in America, and losses in chicken operations, overpowered a firm performance in South America to drag the group into a surprise loss.

JBS's expansion into the U.S. turned sour when a wrong bet on cattle prices in America, and losses in chicken operations, overpowered a firm performance in South America to drag the group into a surprise loss.

Brazil-based JBS, the world's biggest beef group, reported an after-tax loss of $114 million for the April-to-June quarter.

While investors had been prepared for "underperformance" at Pilgrim's Pride, the JBS-controlled chicken producer which last month unveiled a quarterly loss, the Brazilian group also unveiled a hit from being caught out by the southern U.S. drought.